Oil fell in a Sino-US trade conflict
Oil prices fell on Friday amid fears that the US-China trade war could intensify, although US sanctions looming over Iranian oil exports have kept markets from falling further.
West Texas Intermediate (WTI) futures fell 3 cents to $ 70.22 a barrel.
With Venezuelan supply down sharply and worries about US sanctions against Iran, which will target oil exports from November, crude oil markets in August are on track to deploy more than 4% of Brent and a 2% increase in WTI.
Commercial data showed that in a sign of market tightening the amount of unsold crude stored in the Atlantic basin has dwindled from about 30 shipments to just a handful in recent weeks.
However, analysts warned that trade disputes between the United States and other major economies, especially China and the European Union, could begin to curb economic growth and thus increase demand for fuel.
“You have to wonder if (crude) can keep these prices in a world where President Trump doubles in his fight with the EU and China at the same time,” said Greg McKenna, chief market strategist at AxiTrader Securities Brokerage.
WASHINGTON (Reuters) – US President Donald Trump plans to step up trade with China and told his aides he was ready to impose more than $ 200 billion in tariffs on Chinese imports once the public comment period expires next week, according to news reports. .
“Assuming that the trade war is about to escalate again, the questions traders are asking are global growth and demand for crude oil,” McKenna said.